Jiangsu Sainty Marine Hit with a Lawsuit
- Business & Finance
Chinese shipping company Nanjing Hua Hong Shipping has launched legal proceedings against its compatriot shipbuilder Jiangsu Sainty Marine.
The shipping company claims that it has not received payment rleated to a ship-purchase contract dating back to 2014.
Namely, in April, 2014, the two parties signed a deal on the purchase of three ships, Hua Hai 601, Hua Hai 602 and Hua Hai 605, for a total price of CNY 105 million (USD 16.4 million).
In line with the lawsuit, Huan Hong Shipping said that it is yet to receive payment of CNY 34.2 million from Sainty Marine.
This is yet another blow to Shenzhen-listed shipbuilder which has been undergoing a turbulent period having been faced with several order and delivery cancellations.
Among others, these included that from Thailand’s Precious Shipping which declined to take delivery of a 64,000 DWT bulker duo from the yard as it claimed that the bulkers did not meet the required standards. In addition, Singapore-based SE Shipping Lines Pte. Ltd. is taking Sainty Marine to arbitration over a shipbuilding contract dispute. SE Shipping requested to cancel the order as the vessel delivery had been delayed.
World Maritime News Staff